Oil trading near $84 on higher demand and US Dollar Index

Crude oil prices are trading around one percent on Monday, hitting a fresh fifteen month high near $84 a barrel, supported by a lower US Dollar (Dollar Index) and data showing China’s crude oil imports surged by nearly 25 percent in December.

US crude oil futures for February delivery rose 67 cents to $83.42 a barrel by 0958 GMT, off an earlier peak of $83.67, the highest price since October 2008, while in London, ICE Brent crude oil futures gained 60 cents to $81.97. The prolonged cold snap in the US and Europe continued to boost demand for heating fuel, lending support to oil prices.

“The weak US dollar, cold weather and robust Chinese import data are all supporting oil today,” said Carsten Fritsch, oil analyst at Commerzbank in Frankfurt. “At the moment the market is only looking at positive data, not negative numbers.”

China, the world’s second-largest energy consumer, imported over 20 million tons of crude for the first time ever in December, up almost a quarter from November, according to Customs data published on Sunday.

A weaker US Dollar currency makes commodities traded against the dollar, like crude oil, cheaper for those holding other currencies.

Tags:  dollar index, oil prices, oil trading, US dollar